California is poised to be the largest market for zero emission vehicles (ZEVs) with the ownership of plug-in hybrid electric vehicles (PHEVs) crossing 􂀀. As of January 2015, 􂀀% of all ZEVs on the road are driven in California.

Purchase incentives for ZEVs have been extended to 2015 as well: fuel cell EVs (FCEVs) receive $􂀀; battery EVs (BEVs) $􂀀; and PHEVs get $􂀀as purchase rebates. In addition, access to the high-occupancy vehicle (HOV) lane continues to be granted for hybrid electric vehicle (HEV) users, based on decals.

Close to 􂀀 units of ZEVs were sold in 2014, which is expected to grow to􂀀 million units by 2025.

A statewide government ZEV Parking Policy was introduced, providing parking benefits to ZEVs at state-owned properties and buildings. State agencies are also on track to meet the target of􂀀% ZEVs in agencies’ light vehicle purchases.

The legislation extended annual funding to $􂀀 million for innovative transportation and fuel cell technologies, primarily focusing on sprucing up EV charging and hydrogen fueling infrastructure.

About this report

This market insight discusses the future of the California ZEV (Zero Emission Vehicle) mandate, also throwing light on the key highlights of 2014. This research service has the following major chapters: Definitions and Standards, Requirements and Compliance Options, Phase-In Roadmap, and Conclusions. In addition, the Electric Vehicle Miles Travelled (e-VMT) proposal has been discussed and a compliance case study is presented.